Relationship Property & Property Sharing

The amendments introduced by the Property (Relationships) Act 1976 on 1 February 2002 brought a new set of rules that impact significantly on personal relationships.

In general, the Act provides for the equal sharing of relationship property, including but not limited to the family home, even if it is owned by only one of the parties.

As a result, structuring property ownership arrangements before a relationship begins, rearranging ownership during a relationship and addressing issues for the division of assets at the end of relationships have become critical issues.

The failure to plan for how assets will be dealt with if the relationship comes to an end could see one of the parties losing half of their assets.

We have specialist experience in this field to assist clients with the implementation of agreements under the Act.

A critical factor for the success of any agreement will be timing, in that an agreement put in place before a qualifying relationship achieves 3 years duration is likely to be more effective than agreements put in place after that milestone has been reached.

Property Sharing Agreements

The last few years have also seen an increasing number of couples who have been in their relationship for only a short time buying property together. Experience and statistics highlight the fact that many relationships will not last.  This can result in difficult issues about what will happen with the property.

We can prepare Property Sharing Agreements which not only record the agreed basis upon which the couple will own and have use of the property but which also set out clear rules as to how the property is to be dealt with if the parties cannot otherwise agree.